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Digital sovereignty: How states battle to protect data in AI era

  • By Qassem Danash
  • Source: Al Mayadeen Net
  • 8 Sep 2025 13:56
7 Min Read

In a world governed by algorithms and driven by artificial intelligence technologies, digital sovereignty emerges as the banner of a ferocious battle unfolding behind computer screens and data centers.

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  • Digital sovereignty: How states battle to protect data in AI era
    Digital sovereignty: How states battle to protect data in AI era (Al Mayadeen) 

Digital sovereignty is the ability of a state to exercise full control over its informational and technological space, including circulating data, digital infrastructure, and national communication networks. It is translated in the state’s capacity to manage these assets and protect them from any external threats or interventions, whether from other states or from tech giants.

The concept of sovereignty is no longer limited to protecting land, sea, and air borders, but now also includes digital borders, which consist of data centers, undersea internet cables, cloud computing, and communication towers. Just as a state prevents violations of its airspace or territorial waters, it must also prevent breaches of its electronic networks or the theft of sensitive data.

This sovereignty encompasses three main dimensions:

  1. Data control: Ensuring that national data remains within the state or within a secure domain under its control
  2. Control over digital infrastructure: From internet networks to local data centers and cloud storage systems
  3. Cybersecurity: Establishing defensive and offensive mechanisms to confront attempts at hacking, piracy, or manipulation of information

When a foreign company stores the data of millions of citizens on external servers, this exposes the data to political and security risks. Hence, many states work to impose laws obliging companies to use local servers, or at least to guarantee data encryption and prevent unauthorized access.

Therefore, digital sovereignty is not merely a precautionary measure but rather a strategic component of national policy, as it grants the state technological independence that enables it to make sovereign decisions without succumbing to external technological or informational pressure.

Why has digital sovereignty become a state priority?

Digital sovereignty has today risen to the forefront of state priorities due to the evolution of technology into the fundamental infrastructure upon which all sectors of modern life rely. With the increasing reliance of governments and individuals on digital systems in managing the economy, education, health, and defense, the loss of control over the digital space has become a direct threat to national security. The main reasons can be summarized as follows:

Dominance of major tech companies

Tech giants such as Google, Amazon, and Microsoft not only control vital platforms and services but also possess the ability to collect, store, and analyze massive amounts of user data, including data belonging to governments and companies. This influence extends beyond traditional commercial activity to the point of impacting the political and economic decisions of states.

The reliance of government institutions on cloud services could render their strategic data vulnerable to access or disruption by external entities.

The rise of cyberattacks

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Cyberattacks are no longer limited to stealing information but have come to target critical infrastructure such as electricity grid control systems, aviation systems, and hospitals.

The world has witnessed several notable incidents, such as the 2021 cyberattack that crippled the US Colonial Pipeline oil network, causing a serious fuel crisis. These incidents confirm that any disruption in digital sovereignty could lead to economic and security paralysis.

Economic and informational wars

In the age of data, information has become a strategic commodity and a powerful pressure tool. Data can be used to manipulate public opinion through misleading media campaigns, influence financial markets, or even interfere in election results, as evident in the Cambridge Analytica scandal.

In addition, industrial espionage and intellectual property theft have become weapons of economic competition among nations.

Defense strategies to protect digital sovereignty

States today realize that protecting their digital sovereignty requires comprehensive efforts encompassing legislative, technical, and economic aspects. The most prominent strategies they adopt include:

Data protection legislation

One of the most important steps states have taken to protect their digital space is enacting strict laws to regulate the collection and processing of personal data. A notable example is the General Data Protection Regulation (GDPR), approved by the European Union in 2018, which grants individuals the right to know how their data is used and obliges companies to disclose any security breaches, or else face fines that could reach millions of euros.

These legislations not only protect citizens but also send a clear message that national data is not a commodity open for exploitation.

National digital infrastructure

Many states are working to establish local data centers and invest in national communication networks to reduce dependence on foreign providers.

For instance, France launched the “Cloud de Confiance” project to ensure sensitive data is stored within its legal jurisdiction, while China developed internal communication and internet networks to ensure control over the flow of data.

Investment in cybersecurity

Amid the growing wave of cyberattacks, cybersecurity has become an integral part of national security. States are establishing specialized units to counter hacking and attacks, such as the “US Cyber Command” and the “Russian Cyber Corps.” National cadres are also being trained on the latest monitoring and defense techniques, while early warning systems are developed to detect threats before they occur.

Encouraging local innovation

Digital sovereignty cannot be achieved without possessing national alternatives to imported technology. For this reason, governments support startups in fields such as AI, software, and cloud technologies. An example is India’s “India Stack” program, launched to develop an open-source digital infrastructure that supports financial, health, and educational services locally.

The future: Between openness and security

With the progressive technological development and the growing role of data as an economic and strategic force, states face a complex challenge: achieving a balance between openness to the global digital economy and the protection of their national digital security.

The digital economy is, by nature, based on the free exchange of information and cooperation between companies and institutions across borders. Openness in this field provides massive opportunities for investment, innovation, and technology transfer. However, any ill-considered openness may open the door to threats, whether through cyber espionage, external control over digital infrastructure, or even influencing local public opinion via social media platforms.

Conversely, excessive protection and imposing strict restrictions on the flow of information and technology may hinder innovation and isolate the state from global developments, weakening its ability to compete in international markets. Here lies the difficult equation: how can states protect their data and national interests without closing their doors to the world?

Therefore, the future requires a flexible approach that combines:

  1. Protecting the national digital infrastructure from any external threats
  2. Developing secure international partnerships based on mutual trust and legislative alignment
  3. Encouraging local innovation so that technology does not become a tool of pressure in the hands of others

States that succeed in shaping this equation will be the most capable of leading the global digital landscape, not only as consumers of technology but as its developers and owners.

Bottom line

Digital sovereignty is not a luxury but an existential necessity in the age of data and AI. States that recognize this reality and invest in protecting their digital space will be the most capable of safeguarding their national interests and ensuring the independence of their political and economic decisions in the future.

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